Canadian oil producer Whitecap Resources Inc. said on Dec. 8 it has agreed to buy rival TORC Oil & Gas Ltd. in an all-stock deal valued at about CA$552 million (US$430.81 million).
The collapse in fuel demand due to coronavirus-related lockdowns has hammered energy companies in Canada, the fourth-largest global oil producer, triggering a wave of consolidation and cost-cuts in the sector.
Cenovus Energy Inc. said in October it had agreed to buy Husky Energy Inc. for CA$3.8 billion (US$2.97 billion) in a deal that would create Canada's No. 3 oil and gas producer.
Under the deal announced on Dec. 8, shareholders of TORC will receive 0.57 Whitecap shares in exchange for each TORC share, representing a discount of about 4.3% to the last closing price of TORC shares.
Whitecap will also take on CA$335 million of TORC debt.
The oil producer said it would have an enterprise value of about CA$4 billion after the deal, which is expected to close on or before Feb. 25.
In August, Whitecap said it would buy NAL Resources Ltd, owned by Manulife Financial Corp, for CA$155 million. (US$1 = 1.2813 Canadian dollars)
Recommended Reading
OTC: Will More Electrical Demand Bring Energy Debate Back to Reality?
2024-05-06 - Energy experts, including Scott Tinker, touted the importance of discussing the environmental and economic impacts of moving energy forward at the 2024 Offshore Technology Conference.
Bill Gates: ‘A Heroic Effort’ is Beginning, but Climate Goals Still Won’t be Hit
2024-03-26 - Bill Gates said during CERAWeek by S&P Global that the energy transition was picking up speed but still wouldn’t be able to achieve the climate goals established under the Paris Agreement of 2015.
CERAWeek: NextEra CEO: Growing Power Demand Opportunity for Renewables
2024-03-19 - Natural gas still has a role to play, according to NextEra Energy CEO John Ketchum.
Avangrid Begins Construction on its First California Solar Farm
2024-04-10 - Avangrid’s Camino Solar project will generate 57 megawatts of power, the equivalent of the power needs of about 14,000 U.S. homes.
Solar Panel Tariff, AD/CVD Speculation No Concern for NextEra
2024-04-24 - NextEra Energy CEO John Ketchum addressed speculation regarding solar panel tariffs and antidumping and countervailing duties on its latest earnings call.